The U.S. dollar stayed weak against most of its peers on Wednesday after the latest batch of inflation data suggested the Fed would stay patient with regard to interest rates.

Data released by the Labor Department today showed a modest increase in producer prices in the month of February. The report said the producer price index for final demand inched up by 0.1% in February after edging down by 0.1% in January. Economists had expected prices to rise by 0.2%.

Excluding food and energy prices, core producer prices also ticked up by 0.1% in February after climbing by 0.3% in the previous months. Core prices were also expected to increase by 0.2%.

The report also said the annual rate of consumer price growth slowed to 1.5% in February from 1.6% in November, while the annual rate of core consumer price growth edged down to 2.1% from 2.2%.

"The rebound in underlying capital goods orders in January stands out as a positive amid the recent flood of downbeat activity data, but it is still consistent with a gradual slowdown in business equipment investment growth in the first quarter," said Michael Pearce, Senior U.S. Economist at Capital Economics.

He added, "And with the February producer price figures showing that pipeline inflationary pressures remain subdued, there is still a strong case for the Fed to remain patient."

The dollar traded weak against the Euro, and was last seen hovering around 1.1335, down by about 0.4% from previous close, after having edged up to $1.278 earlier in the day.

The Japanese Yen edged up against the greenback, strengthening to 111.15, after having dropped to 111.46 earlier.

The British Pound Sterling is up more than 1.6%, with a unit fetching $1.3283.

British lawmakers have just now voted against a no-deal Brexit. Following this, there will be a vote on Thursday to see if the divorce process could be delayed beyond the March 29 deadline.

According to reports, lawmakers voted 321 votes to 278, backing an amended version of Prime Minister Theresa May's motion on Wednesday that "rejects the United Kingdom leaving the European Union without a Withdrawal Agreement."

In the absence of a deal, Britain will move out of the European Union on March 29.

Against Swiss Franc, the U.S. dollar is notably lower, with the pair losing about 0.5%.

The Canadian loonie gained more than 0.4% against the greenback, as the latter fell to its lowest level against the Canadian currency since last Wednesday.

West Texas Intermediate Crude oil futures for April ended up $1.39, or 2.4%, at $58.26 a barrel, the highest settlement in four months.

On Tuesday, crude oil futures for April ended up $0.08, or 0.1%, at $56.87 a barrel.

Data released by the Energy Information Administration (EIA) this morning showed that crude oil inventories declined by 3.86 million barrels in the week to March 8, as against forecasts for a 2.6 million increase. A week earlier, crude inventories had increased by over 7 million barrels, more than thrice the expected rise.

Gasoline inventories were down 4.62 million barrels last week, nearly twice the expected drop. Meanwhile, distillates stockpiles unexpectedly increased by 0.38 million barrels.

The EIA said the pace of demand growth could be slower than what was thought just a month ago. The report said U.S. crude oil production averaged 11.9 million barrels per day in February, lower than the January average. The EIA now expects U.S. oil production to average 12.3 million barrels per day this year and 13.0 million barrels per day next year.

Earlier this week, Saudi Energy Minister Khalid al-Falih said production cuts by the OPEC and allies, including Russia, would likely continue until June, at least.

Saudi Arabia said that it is planning to cut its crude oil exports in April to below 7 million barrels per day and keep its output well below 10 million barrels per day.

U.S. said it plans to impose "very significant" Venezuela-related sanctions against financial institutions in the coming days.

Meanwhile, Venezuela is struggling with the most massive blackout in its history. A devastating electricity blackout swept over Venezuela late last week, crippling daily life for much of the country.

After moving notably higher over the course of the previous session, treasuries gave back some ground during trading on Wednesday.

Bond prices climbed off their worst levels of the day but still ended the session slightly lower. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.611 percent.

The modest pullback by treasuries came after a Commerce Department report showed an unexpected increase in durable goods orders in the month of January.

The report said durable goods orders climbed by 0.4 percent in January after spiking by an upwardly revised 1.3 percent in December. Economists had expected durable goods orders to drop by 0.5 percent.

However, the increase in durable goods orders was largely due to a continued surge in orders for transportation equipment, which could nosedive in the comings months as aerospace giant Boeing (BA) deals with the second crash of one of its 737 Max 8 jets in less than six months.

Excluding the jump in orders for transportation equipment, durable goods orders edged down by 0.1 percent in January after rising by an upwardly revised 0.3 percent in December.

Ex-transportation orders had been expected to inch up by 0.1 percent, matching the uptick originally reported for the previous month.

Meanwhile, the Commerce Department said orders for non-defense capital goods excluding aircraft, a closely watched indicator of business spending, climbed by 0.8 percent in January after slumping by 0.9 percent in December.

A separate report from the Labor Department showed a modest increase in producer prices in the month of February.

The Labor Department said its producer price index for final demand inched up by 0.1 percent in February after edging down by 0.1 percent in January. Economists had expected prices to rise by 0.2 percent.

Excluding food and energy prices, core producer prices also ticked up by 0.1 percent in February after climbing by 0.3 percent in the previous months. Core prices were also expected to increase by 0.2 percent.

The report also said the annual rate of consume price growth slowed to 1.5 percent in February from 1.6 percent in November, while the annual rate of core consumer price growth edged down to 2.1 percent from 2.2 percent.

"The rebound in underlying capital goods orders in January stands out as a positive amid the recent flood of downbeat activity data, but it is still consistent with a gradual slowdown in business equipment investment growth in the first quarter," said Michael Pearce, Senior U.S. Economist at Capital Economics.

He added, "And with the February producer price figures showing that pipeline inflationary pressures remain subdued, there is still a strong case for the Fed to remain patient."

Meanwhile, traders largely shrugged off the results of the Treasury Department's auction of $16 billion worth of thirty-year bonds, which attracted slightly below average demand.

The thirty-year bond auction drew a high yield of 3.014 percent and a bid-to-cover ratio of 2.25, while the ten previous seven-year note auctions had an average bid-to-cover ratio of 2.30.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Today's thirty-year bond auction came after the Treasury sold $38 billion worth of three-year notes on Monday and $24 billion worth of ten-year notes on Tuesday.

Another batch of U.S. economic data may impact trading on Thursday, with reports on weekly jobless claims, import and export prices, and new home sales likely to attract attention.

Gold prices moved higher on Wednesday, extending gains from previous session, as traders went for the safe haven asset after the dollar drifted down and the likelihood of a chaotic Brexit increased.

The greenback stayed subdued against most major currencies, with the latest batch of inflation data suggesting the Fed would stay patient with regard to interest rates.

The dollar index dropped to 96.65 before edging up to 96.72, still down by more than 0.25% from previous close.

Gold futures for April ended up $11.20, or 0.9%, at $1,309.30 an ounce, the contract's first close about the $1,300 mark in about two weeks.

On Tuesday, gold futures for April ended up $7.00, or 0.5%, at $1,298.10 an ounce.

Silver futures for May settled at $15.456 an ounce, up $0.043 from previous close.

Copper futures for May ended up $0.0070, at $2.9355 per pound.

Data released by the Labor Department today showed a modest increase in producer prices in the month of February.

The report said the producer price index for final demand inched up by 0.1% in February after edging down by 0.1% in January. Economists had expected prices to rise by 0.2%.

Excluding food and energy prices, core producer prices also ticked up by 0.1% in February after climbing by 0.3% in the previous months. Core prices were also expected to increase by 0.2%.

The report also said the annual rate of consumer price growth slowed to 1.5% in February from 1.6% in November, while the annual rate of core consumer price growth edged down to 2.1% from 2.2%.

"The rebound in underlying capital goods orders in January stands out as a positive amid the recent flood of downbeat activity data, but it is still consistent with a gradual slowdown in business equipment investment growth in the first quarter," said Michael Pearce, Senior U.S. Economist at Capital Economics.

He added, "And with the February producer price figures showing that pipeline inflationary pressures remain subdued, there is still a strong case for the Fed to remain patient."

The British Parliament will vote later today on whether Britain will crash out of the EU with no deal. If that fails, a further vote on Thursday will decide whether to extend the Brexit deadline.

Investors also waited for signs of progress on the U.S.-China trade dispute, with Robert Lighthizer, the U.S. trade representative, saying that "major issues" must still be resolved for a successful U.S.-China trade deal.

The bigger than expected increase in construction spending in December came as spending on public construction soared by 4.9 percent to an annual rate of $313.6 billion.

Spending on highway construction spiked by 11.8 percent to a rate of $99.9 billion, while spending on educational construction jumped by 2.2 percent to a rate of $77.8 billion.

The report said spending on private construction rose by 0.2 percent to a rate of $964.2 billion, as an increase in spending on non-residential construction was partly offset by a drop in spending on residential construction.

The Commerce Department said total construction spending in January was up by 0.3 percent compared to the same month a year ago.

Hungary's industrial production growth slowed in January after improving in the previous month, data from the Hungarian Central Statistical Office showed on Wednesday.

Industrial production grew a non-adjusted 4.4 percent year-on-year in January, following a 5.4 percent rise in December. In November, production rose 4.0 percent.

After working day adjustments, production grew 5.0 percent in January after a 5.7 percent rise in the previous month.

Mining and quarrying grew the most by 16.4 percent in January, followed by electricity, gas, steam and air-conditioning supply and manufacturing industry with increases of 9.5 percent and 3.7 percent, respectively.

On a month-on-month basis, industrial production growth slowed to 0.6 percent in January from 2.6 percent in December.